Gold 101

Language Version: Dealer Gold English / Gold & Silver Dealers Spanish

No matter where you looked during the second half of 2007, participating in the financial markets proved to be a wild ride. Mortgage woes, a credit crisis, oil near $100 a barrel, a volatile stock market, and a slumping dollar is enough to send people running for the hills. And, as in troubled times past, the hills have been filled with gold.

Today, like all commodities, the price of gold is ultimately driven by supply and demand, including hoarding and dis-hoarding. Unlike most other commodities, this hoarding and dis-hoarding plays a much bigger role in affecting the price, because almost all the gold ever mined still exists and is potentially able to come to market for the right price. Gold is both tangible and liquid.

There are various ways of acquiring gold for one's portfolio, but at Superior Gold Group we focus and specialize in the purchasing and selling of numismatic coins (of or relating to coins or currency), Pre-1933 gold coins and or gold bullion.

Current price of GOLD

What is going to drive up the current price of GOLD?

When the dollar starts to lose value, many purchases not tied to the greenbacks start to look more attractive. Gold performs in a similar fashion, and since there are only a rare few who believe that the dollar will return to stability any time soon, gold is appealing to a growing population as a means to protect their wealth.

Fear.  We predict that the U.S. housing debacle will continue to drag the country—and possibly the world—into a recession, making gold look very attractive at $900. Geopolitical threats in the Middle East and instability around the world may also bring out new gold bugs, too.

Global Demand.  India, China and South America are all experiencing massive gains in prosperity, and all are developing middle classes. A demand for jewelry and a hunger for diversifying traditional financial strategies are all playing a role in gold's rise. It's no longer westernized powers that ignite gold's demand. Gold is truly global.

The Fed.  With the Federal Reserve and other central banks cutting interest rates, gold's rise might seem a bit odd. But the Fed's reasons for cutting rates—namely slowing U.S. growth and uncertainty surrounding housing, the financial industry, and consumer spending—have sparked extra interest among buyers looking for insurance against surprise inflation that the Fed won't be able to fight—or a severe downturn in the economy. It should be noted that both could happen simultaneously.

Soaring oil.  When oil prices move up, gold often follows suit as people consider how high energy costs will boost inflation.

GOLD’s Additional Uses

Electronics – Gold is a highly efficient energy conductor that can carry tiny currents and remain free of corrosion in items such as smart phones and computer chips.

Medical - Particles of a radioactive gold isotope are implanted in tissues to serve as a radiation source in the treatment of certain cancers.

Future Uses

Gold is too expensive to be used casually. Instead, it is used deliberately and only when less expensive substitutes cannot be identified.  As a result, once a use is found for gold it is rarely abandoned for another metal. This means that the number of uses for gold have been increasing over time.

GOLD’s Future

Gold is in the midst of a growth run in which many respected financial analysts predict will continue to increase gold’s value over the next 10 years.  Stock brokers, real estate brokers, hedge fund managers and even state retirement fund officers have all made substantial stakes on the precious golden metal.

In 2006 and 2007, the combined return on gold was an amazing 58.7%—with most numismatic coins returning far more.

Does that mean it's too late to join the gold rush? Not at all.  These days it's easier than ever to include gold in your portfolio. Superior Gold Group even offers an Accession Slate Program that allows you to begin with as little as $250.00.

GOLD in the Model Portfolio

In a typical precious metals portfolio, Superior Gold Group recommends 40% in gold. Of this 40%, 10% should be allocated to bullion and the difference in numismatic or Pre-1933 gold coins. Portfolios consisting of less than $100,000 USD should consider a different exposure level to gold. Call Superior Gold Group to discuss how to buy gold bullion or coins today.